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Minchanka [31]
3 years ago
15

The economy is in equilibrium when Real GDP is . At this point, the economy is also in . Which of the following did Keynes argue

would be needed to move the economy to equilibrium at Natural Real GDP? Check all that apply. A decrease in consumption A decrease in government purchases An increase in government purchases
Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

c. An increase in government purchases

Explanation:

Note: The full question is attached below

When the real GDP is $550, the total expenditure will be $450 + $55 + $70 = $575

When the real GDP is $600, the total expenditure will be $475 + $55 +$70 =  $600

Note: Graph showing total production and total expenditure is attached below as well. The economy is in equilibrium when real GDP is $600 ​​​​. At this point, the economy is also in recessionary gap.

Thus, an increase in government purchases will be needed to move this economy to equilibrium at natural real GDP.

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Calculate the simple interest you would receive in one year on a savings account that earns 5% annual interest. your beginning b
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The process of preventing exceptions from causing runtime errors is called
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Granval thinks a partnership will reduce his personal financial responsibility. this is true only if?
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Because of the simplicity and tax benefits in the general partnership, a general partnership is one of the most common legal business entities.

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To know more about general partnership here:

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